COLOMBIA Trends and Developments Contributed by: Jaime Trujillo, Juan David Velasco, Natalia Ponce de León and Angelica Navarro, Baker McKenzie S.A.S.
Developments in Tax Matters Wealth tax Colombia levies a wealth tax under two separate regimes: • a permanent regime applicable to resident individu - als and non-resident individuals and entities on their assets held in Colombia (with several excep - tions, such as shares in Colombian entities); and • a temporary regime applicable to legal entities for fiscal year 2026. The temporary regime applicable to legal entities was enacted under the State of Economic, Social and Ecological Emergency declared in early 2026, with the purpose of raising additional revenues to address the fiscal impact of climate-related events and other emergency expenditures. Under this regime, the tax applies exclusively for fiscal year 2026 to legal enti - ties, and other income tax filers with net equity as of 1 March 2026 equal to or greater than 200,000 UVT (approximately COP10.47 billion). The taxable base corresponds to the net equity, defined as total assets minus liabilities, determined as of that date, subject to certain exclusions. The trig - gering event is the possession of such net wealth as of 1 March 2026. The applicable tax rate is generally 0.5%. However, a higher rate of 1.6% applies to entities operating in the financial and extractive sectors. The tax is assessed on a one-time basis and must be paid during 2026.
Developments in Personal Data Protection Standard contractual clauses for international transfer and transmission of personal data In late 2025 and early 2026, the Data Protection Authority formally incorporated the Ibero-American Data Protection Network (RIPD) model contractual clauses into Colombian regulations. Until now, these clauses had only been considered a recommended best practice, as a mechanism for the transfer and/or transmission of personal data in Colombia. The model clauses may only be amended to add to or strengthen the rights and safeguards set forth therein; that is, they may not be modified to reduce, limit or alter the guarantees granted. Likewise, non- compliance with the model clauses may be interpret - ed, beyond a mere contractual breach, as a failure to comply with the orders and instructions issued by the Data Protection Authority and, consequently, as a violation of the Colombian personal data protection regime.
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